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Red 5 says its King of the Hills gold mine delivered record production in March

Kitco Media
By Vladimir Basov
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(Kitco News) - Australian gold producer Red 5 Limited (ASX: RED) announced today that the King of the Hills (KOTH) gold mine delivered record production for the month of March 2023, producing 17,550 ounces of gold.

The company said that total production for the March 2023 quarter was 40,867 ounces (December 2022 quarter: 36,260 ounces), based on 1.04Mt of ore processed at an average head grade of 1.32g/t and gold recovery of 92.0%.

"Mining within the KOTH open pit is now from the primary ore body, located on and around the granodiorite / ultramafic contact. With the 5225mRL bench level mostly completed, mining of the 5215mRL bench will commence in early April 2023. The KOTH underground mine had its strongest month to date in March, with a significant lift in productivity," Red 5 added.

The company also said that its 2H FY2023 production guidance is maintained at 90,000 – 105,000 ounces at an AISC of A$1,750 – A$1,950 per ounce, adding that construction of tailings storage facility 5 was completed during the March quarter, with discharge to commence in April 2023.

Red 5's operations are located in Western Australia's Eastern Goldfields Region, one of the world's most attractive and stable gold regions. The company has established the new King of the Hills processing hub in 2022, with a large new 4.7Mtpa process plant being fed by open pit and underground mines at King of the Hills, and an underground satellite mine at Darlot.

The King of the Hills gold mine consists of a 4.75Moz mineral resource and 2.7Moz ore reserve, making it one of the top 10 largest mines in Australia by ore reserve. The open pit has a forecast 16-year life of mine, and the underground mine has an initial five-year life of mine - which is expected to continue with further exploration. Steady-state production is expected to be approximately 200koz p.a.

Red 5 indicated that its long-term strategy is to grow to be a well-established and respected mid-tier Australian gold producer with multiple options to expand and develop its asset portfolio.

Victoria Gold reports 54.4% gold production growth in Q1 2023 y-o-y
Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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